FullCalculator

Savings Account Calculator

Savings Growth Calculator

Calculate savings growth with deposits and compound interest

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Formula

Balance = Initial × (1 + r)^n + Monthly × [((1 + r)^n - 1) / r], where r = monthly rate and n = total months. Monthly rate derived from APY.

Frequently Asked Questions

How does compound interest work in a savings account?
Compound interest earns interest on both your principal and previously earned interest. Most savings accounts compound daily or monthly. With monthly compounding at 4.5% APY on $10,000, you earn about $459 in the first year vs $450 with simple interest.
What is a good APY for a savings account?
As of 2024, high-yield savings accounts offer 4-5% APY, compared to the national average of about 0.45%. Online banks and credit unions typically offer the best rates. Shop around and compare rates regularly.
How much should I have in savings?
Financial experts recommend 3-6 months of expenses in an emergency fund. Beyond that, save 15-20% of income for retirement and set specific goals (down payment, vacation, etc.). The 50/30/20 rule allocates 20% of after-tax income to savings.

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